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Effect of access to agriculture credit on farm income in the Talensi district of northern Ghana

Author

Listed:
  • EHIAKPOR DENNIS SEDEM

    (Department of Agricultural and Resource Economics, University for Development Studies)

  • ADZAWLA WILLIAM

    (Department of Agricultural and Resource Economics, University for Development Studies)

  • DANSO-ABBEAM GIDEON

    (Department of Agricultural and Resource Economics, University for Development Studies)

Abstract

Agricultural credit is a vital service for agricultural growth and development. Against this milieu, this study examined the effect of this variable on farm income in the Talensi District of the Upper East region of Ghana. Through a two-stage sampling approach, 168 crop farmers were randomly selected. Heckman two-stage treatment effect model was estimated to correct for selectivity biases. Empirical results from the study indicated that the probability of accessing credit was higher for highly educated farmers, farmers belonging to a farmer group, farmers with large farm size, farmers who had access to extension service, female farmers and the elderly. Further, access to credit had a positive significant effect on farm income. Therefore, the study concluded that improving access to agricultural credit service could be a potential source of poverty reduction among farmers in the district. To enhance farmers’ access to agricultural credit, intensification of farmer-based-organization is highly recommended. Farm-level policies oriented towards farmer’s access to financial credit should also be encouraged.

Suggested Citation

  • Ehiakpor Dennis Sedem & Adzawla William & Danso-Abbeam Gideon, 2016. "Effect of access to agriculture credit on farm income in the Talensi district of northern Ghana," Russian Journal of Agricultural and Socio-Economic Sciences, CyberLeninka;Редакция журнала Russian Journal of Agricultural and Socio-Economic Sciences, vol. 55(7), pages 40-46.
    • Handle: RePEc:scn:031261:16967570
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    Cited by:

    1. Ali Sher & Saman Mazhar & Hossein Azadi & Guanghua Lin, 2020. "Smallholder Commercialization and Urban-Rural Linkages: Effect of Interest-Free Agriculture Credit on Market Participation of Rice Growers in Pakistan," Land, MDPI, vol. 10(1), pages 1-24, December.

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